1,3 Butadiene Market Trends

Growth Drivers

• Rapid Expansion of Automotive Sector Worldwide- The Indian passenger car market was worth USD 31 billion in 2021, and is anticipated to account for USD 53 billion by 2027 while increasing at a CAGR of over 9% between 2022 and 2027.
• 1,3-butadiene is used in the production of synthetic rubber, while SBR is mainly used in the production of tires in combination with natural rubber. The growing preference for 1,3 butadiene in the production of rubber tyres and other automotive components coupled with escalating automotive sector is expected to augment global market growth over the forecast period.
• Surge In Exports Of Butadiene Rubber Worldwide- According to the statistics by the International Trade Center (Trademap), the global value of exports of butadiene rubber in the year 2021 was recorded to be USD 3,389,236 thousand, which was an increase from USD 2,178,536 thousand in the previous year.
• Rising Disposable Income And Purchasing Power Of Consumers-According to the Bureau of Economic Analysis, personal income increased by USD 47.0 billion (0.2%) in July 2022, while disposable personal income (DPI) increased by USD 37.6 billion (0.2%). 
• Increasing Consumer Of Plastic Products Around The World- For instance, China was the second largest consumer of India's plastic exports, valued at $1,200 million, a 20% increase year-over-year.
• Expansion Of Fast Moving Consumer Goods (FMCG) Sector- It was observed that, the Indian FMCG market is expected to rise with a CAGR of 14% to reach USD 210 billion by the end of 2025, an increase from USD 100 billion in 2022. 

Challenges

• Availability Of Renewable Substitutes For The Product
• High Price Of Raw Material 
• Growing Number Of Health Concerns Related To 1, 3 Butadiene